Question to the HM Treasury:

To ask the Chancellor of the Exchequer, pursuant to the Answer of 13 September 2018 to Question 172591 on Mozambique: Loans, what steps he is taking with UK and Mozambican authorities to ensure that London-based banks and individuals concerned are held to account for undisclosed loans to state owned companies.

UK-based lenders are subject to prudential disclosure requirements under UK prudential and accounting law. This includes loans made to foreign governments. Compliance with these requirements are independently assessed by the relevant UK regulator during their supervisory activities.

Given the complex international nature of sovereign debt, we continue to believe that internationally-agreed approaches are the most effective way to promote sovereign debt transparency. Sovereign governments are ultimately responsible for the transparency of their own borrowing. The UK supports the IMF and World Bank’s efforts to improve capacity and capabilities of sovereign borrowers to fulfil this responsibility.

The UK recognizes that creditors also have an important role to play in securing debt transparency and sustainability. The UK is working through the G20 to monitor an industry-led initiative by the Institute of International Finance (IIF) to improve the transparency of lending of private creditors.

Regarding the particular case in question, I can confirm that the relevant UK authorities have considered the allegations and have offered assistance to Mozambique in relation to their investigations.